PPF launches search for new bond managers

The Pension Protection Fund has announced today that it
is looking to appoint a new panel of specialist bond managers.

30 JAN 2012 | THE ACTUARY NEWSDESK: NICK MANN

With the fund’s portfolio of assets now worth more than
£9bn, the panel will complement the PPF’s existing managers and give it the
flexibility to access a broader range of bond strategies.

At present,
up to 70% of the assets held by the lifeboat fund are allocated to cash and
bond strategies.They
are targeted at returns above the LIBOR inter-bank interest rate with the aim
of helping the PPF to manage its assets in a manner consistent with its low
risk philosophy.

In the past, the focus of the PPF portfolio has been
mainly in the global sovereign market.

In a statement announcing the launch of the procurement
process, the PPF said: ‘The new panel of specialist managers will give PPF
greater flexibility to respond to opportunities when they arise and help
deliver attractive returns through the economic cycle.’

In particular, PPF is looking for managers with expertise
in absolute return strategies, asset backed securities and emerging market
debt. The contracts will be initially for four years with two renewals lasting
for a term of two years.

The Fund’s existing managers will also continue to manage
money for the PPF under the terms of their current contracts. These managers,
who were appointed to global sovereign mandates in 2009, are: Goldman Sachs
Asset Management, Mondrian, PIMCO and Rogge.